for subscribers

Nuclear uncertainty cited as one of the reasons for Fitch downgrade - economist

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!

Cape Town – The fact that an unaffordable nuclear build programme may get the green light was cited by Fitch Ratings which downgraded South Africa’s sovereign credit rating to junk status, said Sanisha Packirisamy, economist at Momentum Investments in a company note on Friday. 

Fitch became the second ratings agency to downgrade South Africa to junk status in a matter of one week.
 
It cited President Jacob Zuma’s overnight Cabinet reshuffle and a potential change in economic policy direction among the reasons for the downgrade.
 
Fitch also however cautioned that differences over South Africa’s expensive nuclear programme may have contributed to the reshuffle and under the new Energy Minister Nkhensani Kubayi the programme is likely to move “relatively quickly”. 

Under the finance ministry of Nhlanhla Nene, who was removed on 9 December 2015, National Treasury said Eskom could not absorb the nuclear programme with its approved guarantees at the time. 

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
ZAR/USD
15.25
(+1.12)
ZAR/GBP
20.48
(+0.49)
ZAR/EUR
18.40
(+0.09)
ZAR/AUD
11.24
(+0.98)
ZAR/JPY
0.15
(+1.15)
Gold
1814.20
(+2.01)
Silver
23.97
(+5.94)
Platinum
1000.00
(+3.62)
Brent Crude
47.66
(-0.77)
Palladium
2412.50
(+2.22)
All Share
57509.72
(+0.73)
Top 40
52764.09
(+0.74)
Financial 15
11238.33
(+0.71)
Industrial 25
79067.55
(+0.13)
Resource 10
53562.00
(+1.63)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 365 votes
No, I did not.
51% - 885 votes
My landlord refused
28% - 477 votes
Vote